The Hindu Business Line : REL to make Rs 8,000-cr pref issue

Mumbai, Dec. 2 Reliance Energy Ltd has decided to make a Rs 8,000-crore preferential issue of equity shares to its promoters and long-term institutional investors.

The company board on Sunday approved the issue, which would increase the promoter Anil Dhirubhai Ambani Group’s stake in the company to 44 per cent from 36 per cent now. The issue will be priced at Rs 1,812 per share, a premium of 5 per cent to the current market price.

The shares of Reliance Energy ended on Friday at Rs 1,738.10 on BSE, 4.47 per cent up from the previous close at Rs 1,663.70.

Besides the ADAG group, the preferential offer will also be made on the same terms and conditions to Life Insurance Corporation, New India Assurance, Oriental Insurance, General Insurance Corporation, National Insurance, and United India Insurance, which collectively hold around 18 per cent of equity.

The company would be issuing 4.33 crore fresh equity shares at a price of Rs 1,812, said an ADAG group official.

Net worth TO DOUBLE

The new capital infusion will enhance the net worth of Reliance Energy by 100 per cent from Rs 10,542 crore to Rs 20,000 crore by March 2009. The book value per share will also jump from Rs 447 per share to Rs 720 per share, the company said in a statement.

Reliance Energy is engaged in several mega projects in power generation, transmission, and distribution, as well as infrastructure development in areas such as highways, bridges, metro rail and real estate.

A large number of new mega infrastructure projects are also soon being put to bid, said the company’s release.

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More Stories on : Power | Preferential Allotments | Reliance Energy Ltd

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